BAT's Attempted Acquisition of ELFBAR and Vaping Concerns

Mar.21.2023
BAT's Attempted Acquisition of ELFBAR and Vaping Concerns
BAT tested leading e-cigarette brands and found many to be over the nicotine limit in the UK market.

On March 17th, British media outlet betterRetailing released a testing report on BAT (British American Tobacco). The report found that almost all major disposable e-cigarette brands in the UK exceeded their allowed limits for liquid. This includes popular brands such as ELFBAR, LOSTMARY, Found Mary, IVG Bar, Klik Klak, SMOK, SKE Crystal, and Solo. On the same day, the parent company of ELFBAR and LostMary, Shenzhen iQiyi Technology Co., Ltd. (referred to as "iQiyi"), gave an interview to 2FIRSTS.


IQIYI has disclosed for the first time that BAT had contacted them starting from August 2022 and expressed interest in acquiring details of ELFBAR.


VUSE and ELFBAR products on the shelves of a British grocery store | Source: 2FIRSTS London News Center


BAT is the second largest tobacco company in the world with a sales revenue of 27.7 billion pounds (approximately 231.5 billion yuan) in 2022. Their portfolio includes the electronic cigarette brand VUSE and the heat-not-burn product brand Glo.


ELFBAR is a leading brand in the electronic cigarette market in the United Kingdom, holding a significant share of the market for disposable electronic cigarettes.


According to the information provided by iQiyi, the process of the two parties' contact has been summarized as follows:


In August 12, 2022, a representative (unnamed) from BAT had multiple meetings with ELFBAR's manufacturer and market researcher, Miracle. On September 28, 2022, at 4:00 pm, BAT invited Miracle for a video meeting and orally expressed their interest in acquiring ELFBAR. Both parties engaged in brief communication. After September 28, BAT executives proposed to purchase the ELFBAR brand at an undisclosed price. Rumors circulated in the UK market that ELFBAR had been acquired by BAT. From November to December 12, 2022, BAT had multiple discussions with Miracle about the acquisition details. BAT executives wanted Miracle to clarify if they were willing to sell a "partial share" of the ELFBAR brand. On December 12, 2022, Miracle responded to BAT's email, stating that they had no intention of selling the ELFBAR brand.


An incident of excessive levels of tobacco in e-liquids has occurred abruptly.


On February 6th, 2023, almost two months after rejecting BAT's acquisition offer, ELFBAR was exposed by UK media outlet DailyMail for exceeding the limit of vaping oil. The incident continued to escalate, and on March 16th, BetterRetailing published an article revealing that they had received a test report from BAT indicating that a UK disposable e-cigarette product brand did not meet the standards. The media outlet also disclosed that BAT had sent the report to distributors, retailers, and law enforcement agencies in order to highlight the importance of compliance in the market.


BAT promotional brochure | Source: 2FIRSTS London News Center - BAT cannot act as an "electronic cigarette law enforcement officer".


2FIRSTS conducted interviews with relevant lawyers and industry representatives regarding this matter.


According to Tang Shunliang, a lawyer at Zhong Lun Wende (Kunming) Law Firm in Beijing, the current competitive strategy of major tobacco companies is to quickly expand their share of the new tobacco market. When they are unable to secure market share through patents, the most effective approach is to acquire small and medium-sized enterprises through distribution channels in order to gain access to end users. This impatient and results-driven behavior often leads to unsuccessful acquisition attempts, which in turn may result in unfriendly actions aimed at weakening the target company in order to gain market share.


BAT and PMI Patent Comparison | Source: 2FIRSTS


Meanwhile, BAT has a history of using "moral weaponry." For instance, in the process of suing PMI to invalidate its heated tobacco patent (CA-2021-000302) in the UK, BAT attacked PMI's patent application on the basis that it was intended to accuse more competitors of infringement. In the end, BAT emerged victorious in this case.


According to lawyer Tang Shunliang, the main reason for BAT's acquisition of ELFBAR is due to the market competition between BAT and PMI in the field of new tobacco.


BAT is looking to expand its market share in the emerging tobacco field, and acquiring ELFBAR, a leading competitor in the disposable e-cigarette sector, seems like a reasonable idea. However, the concern remains that BAT shouldn't act as the "e-cigarette enforcement police." As a competitor, purchasing the products of a rival for testing and publicizing the results could raise suspicions about their motivation and testing impartiality.


This statement is corroborated by the response of John, the chairman of the UK Vaping Industry Association (UKVIA), to 2FIRSTS. John told 2FIRSTS:


British American Tobacco (BAT) has conducted numerous tests on some of the leading disposable e-cigarette brands in the UK, and shared its findings with various institutions. Other companies have conducted similar tests, but their results differ from those of BAT's testing.


On March 17, 2FIRSTS reached out via email to relevant personnel at BAT. On March 19, 2FIRSTS received an email response from Sam Millicheap, the Director of External Affairs for BAT in the UK and Ireland. In his response, Millicheap acknowledged that they "regularly test all publicly available products in the e-cigarette category through an independent verification laboratory." 2FIRSTS noted that his response was consistent with the response given to the media outlet betterretailing.


Warning:


This article is solely intended for industrial research and does not represent recommendations for any brands or products. The brands mentioned in this article are solely used for the purpose of describing the events. Smoking is harmful to one's health. For more information, please refer to related reading materials.


Overview of the ELFBAR UK E-liquid Exceeding Safety Standards Incident


Lawyer's Op-ed: BAT Cannot Serve as Electronic Cigarette Law Enforcement Police


The British Vaping Association has stated that the test results conducted by BAT are not consistent with those carried out by other organizations.


For more related news on "Miracle", please click on the image.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
2Firsts Hosts China Market Forum at InterTabac as Global Industry Attention to China’s Tobacco Sector Deepens
On September 16, 2Firsts hosted a China-focused industry forum during InterTabac in Dortmund, bringing together more than 30 participants from North America, Europe, India, South Korea and other markets. The session covered traditional tobacco, next-generation products, exports, technology, regulation and supply chains, while examining how China’s tobacco sector operates, where its transformation may be heading, and why its growing role matters increasingly to companies across the global tobacco and nicotine industry.
Sep.21
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
The UK High Court has ordered Chinese vape manufacturer Shenzhen SKE Technology to provide £569,039 ($776,000) in security for costs in its design infringement proceedings against Vapepen London and other defendants over its Crystal Bar vape product. The court did not accept the defendants’ main argument that recovering costs from a China-based company would face significant enforcement obstacles, but found that SKE had not sufficiently disclosed its own financial position. The order is procedural and does not determine the underlying infringement claims.
News
Aug.21
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
French vaping company Kumulus Vape reported first-half 2026 revenue of €25.5 million, down 8.3% year over year, as its core B2B distribution business fell 11% to €21.6 million. B2C and store-network revenue rose 5.6% and 17.8%, respectively. Commercial margin increased to 26.3% from 21.7%, while net profit rose 24.1% to €0.8 million. The company attributed the profitability improvement to catalog optimization, logistics restructuring and the ramp-up of Labster, its in-house production unit for proprietary brands.
Market
Sep.17 by 2Firsts Perspectives
Wall Street Journal: U.S. FDA Plans Faster Vape and Nicotine Pouch Reviews, Revisit of 2021 PMTA Rule
Wall Street Journal: U.S. FDA Plans Faster Vape and Nicotine Pouch Reviews, Revisit of 2021 PMTA Rule
The Trump administration is preparing changes intended to accelerate FDA market authorization reviews for e-cigarettes and nicotine pouches, according to The Wall Street Journal. The FDA is expected to revisit its 2021 PMTA rule and may simplify some scientific study requirements and shorten review times. The agency has not formally announced the changes. Over the past year, the FDA has already accelerated nicotine-pouch reviews, expanded ENDS authorizations and upgraded its CTP Portal NextGen application system. As of August 2026, 43 nicotine pouch products and 48 e-cigarette products had received FDA marketing authorization.
Sep.24
UK ONS Data: Vaping Rate Among Women Aged 25–34 Reaches 18.3%, Compared With 14.4% for Men
UK ONS Data: Vaping Rate Among Women Aged 25–34 Reaches 18.3%, Compared With 14.4% for Men
The vaping rate among women aged 25 to 34 in Great Britain reached 18.3% in 2025, up from 13.7% in 2024 and 8.3% in 2020, according to data from the Office for National Statistics (ONS). The figure was the highest for this group since records began in 2014 and exceeded the 14.4% recorded among men of the same age. Adults aged 25 to 34 also overtook those aged 16 to 24 as the age group with the highest vaping prevalence. Overall, about 5.4 million adults in Great Britain used e-cigarettes in 2025, broadly unchanged from the previous year.
DATA
Oct.13
Cochrane 2026 Update Adds Nine Trials, Keeps High-Certainty Finding That Nicotine E-Cigarettes Improve Quit Rates Over NRT
Cochrane 2026 Update Adds Nine Trials, Keeps High-Certainty Finding That Nicotine E-Cigarettes Improve Quit Rates Over NRT
Cochrane’s 2026 update of its living review on electronic cigarettes for smoking cessation included 80 randomized controlled trials involving 29,861 adult smokers, with nine trials added in this update. The review retained its high-certainty conclusion that nicotine e-cigarettes increase smoking cessation rates compared with nicotine replacement therapy. In absolute terms, about 10 in 100 people using nicotine e-cigarettes may quit smoking for at least six months, compared with about 6 in 100 using NRT. The review found no clear difference in serious adverse event rates between the two groups, while longer-term safety and the relative effectiveness of newer device types remain less certain.
Sep.07